(Reuters) - Air France-KLM said on Thursday it engaged with private equity firm Apollo Global Management for a 500 million euro ($550.70 million) capital injection for one of its engineering and maintenance units.

The proceeds of the transaction would be allocated to general corporate purposes, the airline said, adding it would not involve any operational or workforce-related changes.

The new financing arrangement if complete will help strengthen Air France-KLM’s and Air France’s balance sheet, the group said in a press release.

Air France-KLM and Apollo Global Management entered into a similar solution last year where the private equity firm invested 500 million euro in the company to help repay French state aid.

Sale and leaseback deals are common financing mechanisms in aviation. But a flood of investment from new sources of funding has increased competition for traditional leasing companies.

Earlier in April, Air France KLM agreed to revolving credit facilities (RCF) worth 2.2 billion euros, adding that these are linked to environmental, social and governance (ESG) targets.

Air France KLM is due to report its first quarter results on May 5